In today’s rapidly developing global digital economy, payment and financing methods are undergoing unprecedented changes. PayFi, as the next-generation payment finance infrastructure, adopts an innovative six-layer architecture to provide scalable solutions for global payment and financing challenges. Industry data in 2024 showed an astonishing growth momentum:

• Stablecoin Market Size: Grew from $130 billion to $204 billion (+57%) .

• Monthly Transfer Volume: Surged from $1 trillion to $2.6 trillion (+148%) .

• PayFi Financing Layer: The platform’s monthly payment and financing volume increased from $63 million to $136 million (+116%) .

Payment and financing are built on the fundamental principle of the time value of money: a dollar today is worth more than a dollar in the future. This principle drives the global economy in the modern financial system. The current payment and financing market has evolved into a large-scale, complex ecosystem. In this system:

• The global transaction volume of the credit card market reached $16 trillion in 2023.

• Trade financing supports an $89 trillion global B2B payment market.

• Cross-border remittance services have become an essential financial tool for one in seven people globally.

However, traditional payment systems face severe challenges. In cross-border payments, a transaction often needs to go through a complex network of correspondent banks and the SWIFT system, taking several days to complete. The high transaction fees (averaging 7%) make many small and medium-sized enterprises and individuals hesitant. More importantly, 1.4 billion people globally still cannot access basic banking services due to various reasons.

Instant Settlement Revolution

In the field of cross-border payments, Arf’s innovative practice demonstrates the huge potential of PayFi. As a leading payment and financing platform, Arf provides licensed financial institutions with cross-border payment revolving credit lines based on USDC, achieving instant fund settlement with international partners. Through smart contracts, the repayment process is automatically executed, and the credit line is dynamically adjusted according to business needs. Arf helps payment institutions shorten the settlement cycle from T+3 to T+0, significantly improving the efficiency of fund utilization.

Reconstruction of Cross-Border Payments

Huma Finance has pioneered a new type of payment and financing model in the PayFi ecosystem. The platform assesses the business operations and financial health of cross-border payment companies to determine creditworthiness and provides customized transactional and revolving daily liquidity support. By combining traditional data analysis with blockchain technology, Huma not only reduces operational costs but also offers more flexible financing options for customers.

Digital Asset Payment Innovation

The Rain project, which provides USDC-collateralized corporate credit card services for Web3-native teams, showcases PayFi’s practice in payment innovation. Companies can deposit USDC into a smart vault, and the system directly determines the credit limit based on the value of the collateral assets. The balance is automatically settled on-chain at the end of each billing cycle. This model significantly reduces dependence on the traditional banking system.

Simultaneously, the Kulipa platform integrates self-custody wallets directly, allowing users to obtain Web2 debit card functionality while retaining control of their funds. By using program-derived addresses (PDAs) on low-latency blockchains like Solana to lock funds in real-time, Kulipa provides a safer and more efficient solution for digital asset payments.

DePIN Financing: Pioneering a New Model for Infrastructure Construction

In the field of Decentralized Physical Infrastructure Networks (DePIN), the innovative practices of the Roam project are particularly noteworthy. As a pioneer in decentralized WiFi networks, Roam has lowered the barrier to entry through two financing schemes:

• Hybrid Financing Model:

  • 30% down payment in stablecoins, with the balance provided as an on-chain loan by Huma Finance.

  • Repayment is made in installments through mining rewards and Roam token airdrops.

• Full Collateral Model:

  • Collateralize 4 SOL (~$800) to obtain full equipment financing.

  • Ownership of the equipment is automatically transferred upon repayment completion.

This innovative model reduces the cost of DePIN network construction by 40-60% and increases participants’ average annual return rate to 18-25%, effectively promoting the large-scale development of decentralized infrastructure networks.

A crude oil trade completed by Tether’s investment arm in October 2024 perfectly illustrates the application value of PayFi in commodity trading. This transaction, involving 670,000 barrels of Middle Eastern crude oil worth approximately $45 million, used USDT to achieve instant cross-border payments. Not only did it reduce transaction costs by 30-50%, but the entire process was also completely transparent on the blockchain, trackable and verifiable, significantly enhancing trust among all parties.

Looking ahead to 2025, the development of the PayFi ecosystem will primarily focus on the improvement of regulatory frameworks and the enhancement of DeFi composability. Platforms like Arf and Huma are actively exploring cooperation models with traditional financial institutions to create a better environment for institutional participants. Meanwhile, innovative projects like Rain and Roam continue to expand application scenarios, driving the industry towards a more standardized and mature direction.

For ordinary people, the development of the PayFi ecosystem brings tangible benefits. Whether using Rain’s digital asset credit card, conducting cross-border payments through Arf, or participating in the construction of Roam’s decentralized WiFi network, users can enjoy more convenient and economical financial services.

PayFi is reshaping the global financial infrastructure through innovative projects like Arf, Huma, and Rain. It not only improves payment efficiency and reduces transaction costs but also paves the way for a more open and inclusive financial era. As the ecosystem continues to improve and application scenarios expand, we can expect to see more exciting innovative solutions emerge in the coming years, driving the global financial system towards greater efficiency and inclusivity.

In today’s rapidly developing global digital economy, payment and financing methods are undergoing unprecedented changes. PayFi, as the next-generation payment finance infrastructure, adopts an innovative six-layer architecture to provide scalable solutions for global payment and financing challenges. Industry data in 2024 showed an astonishing growth momentum:

• Stablecoin Market Size: Grew from $130 billion to $204 billion (+57%) .

• Monthly Transfer Volume: Surged from $1 trillion to $2.6 trillion (+148%) .

• PayFi Financing Layer: The platform’s monthly payment and financing volume increased from $63 million to $136 million (+116%) .

Payment and financing are built on the fundamental principle of the time value of money: a dollar today is worth more than a dollar in the future. This principle drives the global economy in the modern financial system. The current payment and financing market has evolved into a large-scale, complex ecosystem. In this system:

• The global transaction volume of the credit card market reached $16 trillion in 2023.

• Trade financing supports an $89 trillion global B2B payment market.

• Cross-border remittance services have become an essential financial tool for one in seven people globally.

However, traditional payment systems face severe challenges. In cross-border payments, a transaction often needs to go through a complex network of correspondent banks and the SWIFT system, taking several days to complete. The high transaction fees (averaging 7%) make many small and medium-sized enterprises and individuals hesitant. More importantly, 1.4 billion people globally still cannot access basic banking services due to various reasons.

Instant Settlement Revolution

In the field of cross-border payments, Arf’s innovative practice demonstrates the huge potential of PayFi. As a leading payment and financing platform, Arf provides licensed financial institutions with cross-border payment revolving credit lines based on USDC, achieving instant fund settlement with international partners. Through smart contracts, the repayment process is automatically executed, and the credit line is dynamically adjusted according to business needs. Arf helps payment institutions shorten the settlement cycle from T+3 to T+0, significantly improving the efficiency of fund utilization.

Reconstruction of Cross-Border Payments

Huma Finance has pioneered a new type of payment and financing model in the PayFi ecosystem. The platform assesses the business operations and financial health of cross-border payment companies to determine creditworthiness and provides customized transactional and revolving daily liquidity support. By combining traditional data analysis with blockchain technology, Huma not only reduces operational costs but also offers more flexible financing options for customers.

Digital Asset Payment Innovation

The Rain project, which provides USDC-collateralized corporate credit card services for Web3-native teams, showcases PayFi’s practice in payment innovation. Companies can deposit USDC into a smart vault, and the system directly determines the credit limit based on the value of the collateral assets. The balance is automatically settled on-chain at the end of each billing cycle. This model significantly reduces dependence on the traditional banking system.

Simultaneously, the Kulipa platform integrates self-custody wallets directly, allowing users to obtain Web2 debit card functionality while retaining control of their funds. By using program-derived addresses (PDAs) on low-latency blockchains like Solana to lock funds in real-time, Kulipa provides a safer and more efficient solution for digital asset payments.

DePIN Financing: Pioneering a New Model for Infrastructure Construction

In the field of Decentralized Physical Infrastructure Networks (DePIN), the innovative practices of the Roam project are particularly noteworthy. As a pioneer in decentralized WiFi networks, Roam has lowered the barrier to entry through two financing schemes:

• Hybrid Financing Model:

  • 30% down payment in stablecoins, with the balance provided as an on-chain loan by Huma Finance.

  • Repayment is made in installments through mining rewards and Roam token airdrops.

• Full Collateral Model:

  • Collateralize 4 SOL (~$800) to obtain full equipment financing.

  • Ownership of the equipment is automatically transferred upon repayment completion.

This innovative model reduces the cost of DePIN network construction by 40-60% and increases participants’ average annual return rate to 18-25%, effectively promoting the large-scale development of decentralized infrastructure networks.

A crude oil trade completed by Tether’s investment arm in October 2024 perfectly illustrates the application value of PayFi in commodity trading. This transaction, involving 670,000 barrels of Middle Eastern crude oil worth approximately $45 million, used USDT to achieve instant cross-border payments. Not only did it reduce transaction costs by 30-50%, but the entire process was also completely transparent on the blockchain, trackable and verifiable, significantly enhancing trust among all parties.

Looking ahead to 2025, the development of the PayFi ecosystem will primarily focus on the improvement of regulatory frameworks and the enhancement of DeFi composability. Platforms like Arf and Huma are actively exploring cooperation models with traditional financial institutions to create a better environment for institutional participants. Meanwhile, innovative projects like Rain and Roam continue to expand application scenarios, driving the industry towards a more standardized and mature direction.

For ordinary people, the development of the PayFi ecosystem brings tangible benefits. Whether using Rain’s digital asset credit card, conducting cross-border payments through Arf, or participating in the construction of Roam’s decentralized WiFi network, users can enjoy more convenient and economical financial services.

PayFi is reshaping the global financial infrastructure through innovative projects like Arf, Huma, and Rain. It not only improves payment efficiency and reduces transaction costs but also paves the way for a more open and inclusive financial era. As the ecosystem continues to improve and application scenarios expand, we can expect to see more exciting innovative solutions emerge in the coming years, driving the global financial system towards greater efficiency and inclusivity.